Bristol Myers Squibb has announced its plans to acquire Karuna Therapeutics at a per share price of $330.00 in cash. The total equity value of the deal mounts up to approximately $14 billion, or $12.7 billion net after estimated cash acquired is accounted for. Read more on Bloomberg Law.
In response to this announcement, the market reacted with Bristol Myers shares experiencing a 1.58% drop in premarket trades. In sharp contrast, Karuna’s shares soared 46.4% upon the revelation of the acquisition.
Such mergers and acquisitions have become a common trend as pharmaceutical companies strive to diversify their portfolios and expand their research and development capabilities.
Both the firms have not yet released further details of the agreement publicly. Legal professionals are keen to dissect and analyze the exact legal implications and challenges this deal might entail in the coming days.